Land Register Department 3 Release assignment on purchase
July 28, 2012 | 40,00 EUR | answered by Jan Wilking
Dear Sir or Madam,
Issue:
I have already signed a purchase agreement.
Excerpt from the contract:
"The encumbrances entered in Section III will not be assumed by the buyer and will be redeemed from the purchase price against the deletion of the land charges in the land register."
In section III of the land register:
item No. 1: EUR 80,000.00 mortgage without certificate for BANK A...
(According to the seller, there is still approximately EUR 21,000 remaining.)
Also in section III, marked as changes to (1) with 1a, it is additionally stated that EUR 55,000 were assigned to BANK B.
(I only recently found out about this fact.)
However, only item No. 1 is mentioned as an encumbrance in the contract.
The notary said I shouldn't worry (1 and 1a belong together) if No. 1 is redeemed, the assignment will also be "automatically taken care of".
I am still worried.
Is it possible that the assignment to Bank B (EUR 55,000) could somehow "remain in the land register"?
I mean, BANK A only needs the EUR 21,000 and then they will issue the deletion permit. What happens then with the assignment?
Thank you for your help.
Dear inquirer,
I am happy to answer your request taking into account your description of the facts and your input as follows:
In principle, only the remaining portion of the original mortgage can be properly deleted, while the subordinate partial assignment can remain in effect. Therefore, I cannot fully understand the notary's statement regarding the "automatic completion." However, in my opinion, you do not need to worry. According to the contract clause you mentioned, all encumbrances registered in Section III will be settled from the purchase price without limitation - this applies to both the remaining portion of the original mortgage (No. 1) and the partial assignment (No. 1a). Therefore, the buyer is entitled to the settlement of the assigned portion of the mortgage as well.
I hope this provides you with a helpful initial orientation. If you have any uncertainties, please use the free follow-up function.
Please bear in mind that I cannot provide a conclusive advice without knowing all the circumstances within the scope of an initial consultation. If you wish for a conclusive assessment of the situation, I recommend contacting a lawyer and discussing the matter with them after reviewing all documents.
Best regards
